Binance, the world’s leading cryptocurrency exchange, has solidified its dominance in 2024. According to data from DeFiLama, Binance has attracted a staggering $23 billion in deposits between January 1st and December 12th, 2024. This figure surpasses the combined total of the next five largest exchanges.
Outpacing the Competition
ByBit, the second-largest exchange, saw $8.13 billion in deposits during the same period. Other notable exchanges, including OKX, Bitmex, and Robinhood, followed with deposits of $5.36 billion, $3.44 billion, and $2.31 billion, respectively.
Regulatory Challenges Amidst Success
Despite its impressive growth, Binance has faced significant regulatory hurdles in various jurisdictions. In the United States, the company was fined $4.3 billion for violating anti-money laundering regulations.
Nigeria, a key market for Binance, has also presented challenges. The company and its employees faced allegations of money laundering, tax evasion, and currency manipulation. Yemi Cardoso, the Governor of the Central Bank of Nigeria, claimed that Binance generated $26 billion from Nigeria. However, Binance CEO Richard Teng refuted this claim.
Global Dominance and Market Insights
Binance’s global dominance is evident in its market share. China remains its largest market, contributing 20% of its volume with 900,000 active users. The Chinese market represents an $80.6 billion futures market and a $9.4 billion spot market for the exchange.
South Korea is another significant market for Binance, contributing $56.9 billion in futures volume and $1.39 billion in spot volume.
The increasing deposit sizes, with average BTC deposits rising from 0.36 BTC to 1.65 BTC and USDT deposits surging from $19.6k to $230k, indicate growing institutional and individual interest in cryptocurrencies. However, the lack of a comprehensive regulatory framework poses challenges for exchanges worldwide.
